b) A manufacturing contractor has produced a proposal to deliver 400 units at a price based on the time of 240 hrs which it took to make the first 100 units (2.4 hrs per unit). However, productivity studies have shown that it is possible to achieve a progress ratio of 80% for this type of product. Based on this knowledge how would you advise the contractor to revise the estimated cost?

b) A manufacturing contractor has produced a proposal to deliver 400 units at a price based on the time of 240 hrs which it took to make the first 100 units (2.4 hrs per unit). However, productivity studies have shown that it is possible to achieve a progress ratio of 80% for this type of product. Based on this knowledge how would you advise the contractor to revise the estimated cost?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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